J
Joshua Fagbemi
Guest
Satellite internet service provider, Starlink has halted plans to double its monthly subscription and hardware prices in Nigeria. This is coming three weeks after the satellite company announced an increment plan.
In a statement released today, the company has suspended the planned price hike owing to a lack of regulatory approval from the Nigerian Communications Commission (NCC).
“Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service. Today, we are temporarily suspending this price increase as we navigate regulatory challenges,” the statement reads.
Starlink
Recall that the SpaceX-owned satellite internet company announced a 100% increase to its monthly subscription from N38,000 to N75,000. It also increased the prices of its hardware from N440,000 to N590,000 due to “excessive levels of inflation” and continuous depreciation of naira against the dollar.
Starlink also pointed out that the price hike suspension is temporary, pending regulatory approval. “We remain committed to providing high-speed internet in Nigeria, but we need regulatory support to make the improvements necessary for a better customer experience.”
In addition, the satellite company also expressed that customers already charged for the proposed price shall be covered through a one-time credit activation. “If you’ve already been charged at the higher rate, a one-time credit will be applied to your account to cover the difference.”
A receipt confirming the reversed price hike
Meanwhile, the company notified users of the risk of terminating services in Nigeria if the impasse persists: “Without these approvals, our ability to continue delivery service is at risk.”
On October 1, 2024, Starlink announced the price increment to its Nigerian subscribers via an email, blaming the increase on “excessive levels of inflation”.
The company hiked its monthly subscription stating that the Standard residential plan with a 1 TB fair usage, which previously cost N38,000, was increased to N75,0000. Starlink kits within Nigeria were increased to N167,000 per month, from N49,000 while International roaming was raised to N717,000 per month.
Recall that this is the third time the satellite internet service provider has slashed its prices in Nigeria. It announced a price reduction for its hardware in Nigeria in October 2023. The cost of the Starlink kit, essential for accessing the service, was slashed by 21% from ₦378,000 to ₦299,000.
When Starlink officially announced its presence in Nigeria in January 2023, the company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.
As of February 2024, the router was sold for N378,000. An increment regime implemented in early March saw a price jump to N800,000. This was evidently in response to the rapidly declining value of the naira to as high as N1900 to a dollar.
When the naira appreciated from record lows close to N2,000/$ to N1230.61/$ on the official window in April, the company slashed the hardware price to N440,000.
Read More: Naira devaluation: Starlink increases router price to N590,000, monthly subscription up by 100%
Following the price hike announcement, the Nigerian telecoms industry regulator, the Nigerian Communications Commission (NCC) initially suspended Starlink’s licence. It later retracted the suspension and insinuated a behind-the-scenes intervention process.
The NCC noted that Starlink’s decision to unilaterally review its subscription packages upwards did not receive the approval of the NCC. “We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for a price adjustment for which the Commission was yet to communicate a decision”, the commission said.
According to NCC, Starlink’s action also contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and the agency’s license conditions regarding tariffs.
Section 108 of the Nigerian Communications Act 2003 (NCA) gives NCC the authority to regulate telecom tariffs. The Act dictates that no NCC licensee can charge for services until the NCC approves the tariff rates and charges.
“Holders of individual licences shall not impose any tariff or charges for the provision of any service until the Commission has approved such tariff rates and charges except as otherwise provided in this Part,” the Act says.
Recall that other Nigerian telecommunications companies have been pressuring the NCC for tariff hike approval. Approving Starlink’s price hike quest to adjust its prices might create a precedent for the others.
Also Read – Can NCC Sanction Starlink over its “unapproved” 97% price increase?
The post Starlink suspends subscription price hike “temporarily” over regulatory constraints first appeared on Technext.
In a statement released today, the company has suspended the planned price hike owing to a lack of regulatory approval from the Nigerian Communications Commission (NCC).
“Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service. Today, we are temporarily suspending this price increase as we navigate regulatory challenges,” the statement reads.
Starlink
Recall that the SpaceX-owned satellite internet company announced a 100% increase to its monthly subscription from N38,000 to N75,000. It also increased the prices of its hardware from N440,000 to N590,000 due to “excessive levels of inflation” and continuous depreciation of naira against the dollar.
Starlink also pointed out that the price hike suspension is temporary, pending regulatory approval. “We remain committed to providing high-speed internet in Nigeria, but we need regulatory support to make the improvements necessary for a better customer experience.”
In addition, the satellite company also expressed that customers already charged for the proposed price shall be covered through a one-time credit activation. “If you’ve already been charged at the higher rate, a one-time credit will be applied to your account to cover the difference.”
A receipt confirming the reversed price hike
Meanwhile, the company notified users of the risk of terminating services in Nigeria if the impasse persists: “Without these approvals, our ability to continue delivery service is at risk.”
Trends of Starlink Price Adjustments
On October 1, 2024, Starlink announced the price increment to its Nigerian subscribers via an email, blaming the increase on “excessive levels of inflation”.
The company hiked its monthly subscription stating that the Standard residential plan with a 1 TB fair usage, which previously cost N38,000, was increased to N75,0000. Starlink kits within Nigeria were increased to N167,000 per month, from N49,000 while International roaming was raised to N717,000 per month.
Recall that this is the third time the satellite internet service provider has slashed its prices in Nigeria. It announced a price reduction for its hardware in Nigeria in October 2023. The cost of the Starlink kit, essential for accessing the service, was slashed by 21% from ₦378,000 to ₦299,000.
When Starlink officially announced its presence in Nigeria in January 2023, the company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.
As of February 2024, the router was sold for N378,000. An increment regime implemented in early March saw a price jump to N800,000. This was evidently in response to the rapidly declining value of the naira to as high as N1900 to a dollar.
When the naira appreciated from record lows close to N2,000/$ to N1230.61/$ on the official window in April, the company slashed the hardware price to N440,000.
Read More: Naira devaluation: Starlink increases router price to N590,000, monthly subscription up by 100%
The implications of a successful Starlink price hike
Following the price hike announcement, the Nigerian telecoms industry regulator, the Nigerian Communications Commission (NCC) initially suspended Starlink’s licence. It later retracted the suspension and insinuated a behind-the-scenes intervention process.
The NCC noted that Starlink’s decision to unilaterally review its subscription packages upwards did not receive the approval of the NCC. “We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for a price adjustment for which the Commission was yet to communicate a decision”, the commission said.
According to NCC, Starlink’s action also contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and the agency’s license conditions regarding tariffs.
Section 108 of the Nigerian Communications Act 2003 (NCA) gives NCC the authority to regulate telecom tariffs. The Act dictates that no NCC licensee can charge for services until the NCC approves the tariff rates and charges.
“Holders of individual licences shall not impose any tariff or charges for the provision of any service until the Commission has approved such tariff rates and charges except as otherwise provided in this Part,” the Act says.
Recall that other Nigerian telecommunications companies have been pressuring the NCC for tariff hike approval. Approving Starlink’s price hike quest to adjust its prices might create a precedent for the others.
Also Read – Can NCC Sanction Starlink over its “unapproved” 97% price increase?
The post Starlink suspends subscription price hike “temporarily” over regulatory constraints first appeared on Technext.